Chapter 3 Types of Property Policies
1. The Physicians and Surgeons Equipment Floater in NOT intended forwhich of the
following?
A Medical supplies located in a hospital
B Surgeon's supplies located in the surgeon's office
C Waiting room furniture in a doctor's office
D Office equipment located in a dentist's office: A Medical supplies located in ahospital
This coverage form protects individuals in the medical or dental profession for lossto valuable
medical and dental equipment, materials and supplies, including office equipment and
furniture, and similar property of others. Coverage is not intended for hospitals, schools or
other institutions.
2. All of the following are special personal property limits under a homeown-ers policy
EXCEPT
A $500 for business personal property on the insured premises.
B $1,500 for securities, accounts, deeds, and evidences of debt.
C $1,500 for trailers not used with watercraft.
D $2,500 for theft of firearms.: A $500 for business personal property on theinsured premises.
HO forms place a $2,500 limit for business personal property that applies on premises only.
A limit of $500 applies to loss of business personal property whileaway from the premises.
3. Coverage under a Floor Plan Merchandise form is written on a reporting form basis that
requires the insured to file reports with the insurer. What is thetime frame for those reports?
A By the 15th of each month
B 20 days after the report is due
C Within 30 days after the end of each month
D Within the first 10 days of each month: C Within 30 days after the end of eachmonth
Coverage is written on a reporting form basis that requires the insured to file reportswith the
insurer within 30 days after the end of each month.
,4. A commercial property special form covers property in transit up to
A $5,000.
B ACV.
C $500.
D Full replacement cost.: A $5,000.
A commercial property special form covers property in transit up to $5,000. This extension
of coverage may be added to the special form. It is additional insurance(in addition to the
coverage limit), and coinsurance does not apply.
5. How much coverage is provided under a homeowners policy for theft orunauthorized use
of a credit card?
A $100
B $500
C $1,000
D $5,000: B $500
$500 is provided automatically, and may be increased by endorsement.
6. An individual's construction company leaves mobile equipment and con- struction
machinery on the job site until the project is completed. What could this individual use to
insure it?
A Builders risk form
B General property form
C Contractors equipment floater
D Bailee's customers form: C Contractors equipment floater
The contractors equipment floater covers equipment left unattended on a job siteuntil the
project is finished.
7. All of the following are perils covered under the broad form dwelling policyEXCEPT
A Theft.
,B Fire.
C Lightning.
D Collapse.: A Theft.
Theft is not a peril named in the policy.
8. How much is the premium for the dwelling under construction endorse-ment under the
dwelling policy?
A 75% of the gross premium
B The full value of the house
C 50% of the actual value premium
D The average amount of insurance during construction: D The average amountof insurance
during construction
The premium is based on the average value of the house and building materialsfrom the first
day of construction until completion.
9. Who would participate in a Write Your Own (WYO) flood insurance pro-gram?
A Businesses requiring National Flood Insurance policies
B Private insurers that wish to write and service National Flood Insurancepolicies on a no
risk-bearing basis
C Lloyd's associations
D Government insurance companies that write and service National Flood Insurance policies:
B Private insurers that wish to write and service National FloodInsurance policies on a no risk-
bearing basis
A WYO program is made up of private insurers that write and service National Flood Insurance
policies on a no risk-bearing basis through a special arrangement with the Federal Insurance
Administration. WYO programs retain part of the flood insurance premium to pay for
commissions and administrative costs. The remaining premiums, plus investment, are used to
cover losses.
10. The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to
, A $250,000.
B $100,000.
C $150,000.
D $200,000.: A $250,000.
It is written for the value of the dwelling up to $250,000 on a replacement cost basis.
11. When a regular bill of lading is issued, who will be responsible for theinvoice cost of
any damaged property?
A The person to whom the goods are being shippedB The shipper
C The driver of the truck
D The carrier: D The carrier
When a regular bill of lading is issued, the carrier will be responsible for the invoice cost of any
damaged property, and the shipper does not have to specifically declarea value.
12. Which inland marine form would provide the best protection for a dry cleaning company
against loss or damage to their customer's property whilein the care, custody, and control of
the dry cleaners?
A Furriers block policy
B Personal property coverage partC Vendor's single interest policy
D Bailee's customer policy: D Bailee's customer policy
A bailee's policy does not cover property of the insured, but does cover theircustomer's
property while in the care of the insured.
13. Coverage under the builders risk form will end in all of the following situa-tions
EXCEPT
A The insured has sold the property.
1. The Physicians and Surgeons Equipment Floater in NOT intended forwhich of the
following?
A Medical supplies located in a hospital
B Surgeon's supplies located in the surgeon's office
C Waiting room furniture in a doctor's office
D Office equipment located in a dentist's office: A Medical supplies located in ahospital
This coverage form protects individuals in the medical or dental profession for lossto valuable
medical and dental equipment, materials and supplies, including office equipment and
furniture, and similar property of others. Coverage is not intended for hospitals, schools or
other institutions.
2. All of the following are special personal property limits under a homeown-ers policy
EXCEPT
A $500 for business personal property on the insured premises.
B $1,500 for securities, accounts, deeds, and evidences of debt.
C $1,500 for trailers not used with watercraft.
D $2,500 for theft of firearms.: A $500 for business personal property on theinsured premises.
HO forms place a $2,500 limit for business personal property that applies on premises only.
A limit of $500 applies to loss of business personal property whileaway from the premises.
3. Coverage under a Floor Plan Merchandise form is written on a reporting form basis that
requires the insured to file reports with the insurer. What is thetime frame for those reports?
A By the 15th of each month
B 20 days after the report is due
C Within 30 days after the end of each month
D Within the first 10 days of each month: C Within 30 days after the end of eachmonth
Coverage is written on a reporting form basis that requires the insured to file reportswith the
insurer within 30 days after the end of each month.
,4. A commercial property special form covers property in transit up to
A $5,000.
B ACV.
C $500.
D Full replacement cost.: A $5,000.
A commercial property special form covers property in transit up to $5,000. This extension
of coverage may be added to the special form. It is additional insurance(in addition to the
coverage limit), and coinsurance does not apply.
5. How much coverage is provided under a homeowners policy for theft orunauthorized use
of a credit card?
A $100
B $500
C $1,000
D $5,000: B $500
$500 is provided automatically, and may be increased by endorsement.
6. An individual's construction company leaves mobile equipment and con- struction
machinery on the job site until the project is completed. What could this individual use to
insure it?
A Builders risk form
B General property form
C Contractors equipment floater
D Bailee's customers form: C Contractors equipment floater
The contractors equipment floater covers equipment left unattended on a job siteuntil the
project is finished.
7. All of the following are perils covered under the broad form dwelling policyEXCEPT
A Theft.
,B Fire.
C Lightning.
D Collapse.: A Theft.
Theft is not a peril named in the policy.
8. How much is the premium for the dwelling under construction endorse-ment under the
dwelling policy?
A 75% of the gross premium
B The full value of the house
C 50% of the actual value premium
D The average amount of insurance during construction: D The average amountof insurance
during construction
The premium is based on the average value of the house and building materialsfrom the first
day of construction until completion.
9. Who would participate in a Write Your Own (WYO) flood insurance pro-gram?
A Businesses requiring National Flood Insurance policies
B Private insurers that wish to write and service National Flood Insurancepolicies on a no
risk-bearing basis
C Lloyd's associations
D Government insurance companies that write and service National Flood Insurance policies:
B Private insurers that wish to write and service National FloodInsurance policies on a no risk-
bearing basis
A WYO program is made up of private insurers that write and service National Flood Insurance
policies on a no risk-bearing basis through a special arrangement with the Federal Insurance
Administration. WYO programs retain part of the flood insurance premium to pay for
commissions and administrative costs. The remaining premiums, plus investment, are used to
cover losses.
10. The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to
, A $250,000.
B $100,000.
C $150,000.
D $200,000.: A $250,000.
It is written for the value of the dwelling up to $250,000 on a replacement cost basis.
11. When a regular bill of lading is issued, who will be responsible for theinvoice cost of
any damaged property?
A The person to whom the goods are being shippedB The shipper
C The driver of the truck
D The carrier: D The carrier
When a regular bill of lading is issued, the carrier will be responsible for the invoice cost of any
damaged property, and the shipper does not have to specifically declarea value.
12. Which inland marine form would provide the best protection for a dry cleaning company
against loss or damage to their customer's property whilein the care, custody, and control of
the dry cleaners?
A Furriers block policy
B Personal property coverage partC Vendor's single interest policy
D Bailee's customer policy: D Bailee's customer policy
A bailee's policy does not cover property of the insured, but does cover theircustomer's
property while in the care of the insured.
13. Coverage under the builders risk form will end in all of the following situa-tions
EXCEPT
A The insured has sold the property.
